Exam 17: Accounting and Reporting for the Federal Government Glossary

Which of the following is not an objective identified in FASAB Statement of Accounting and Reporting Concepts No.1?

An expended appropriation occurs when cash has been disbursed to pay for a good or service.

Explain the components of net position.

A federal agency received $900,000 as its annual appropriation from Congress.How would the appropriation be recorded by the agency?

"Each federal government agency should maintain a General Fund and as many other funds defined by the GASB as are appropriate." Do you agree? Why or why not?

A federal agency only records entries in the proprietary track accounts for supplies inventory.

Describe the purpose of a management's discussion and analysis (MD&A)in the general purpose federal financial report of a federal agency.

Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board.

Stewardship assets are reported as a classification within the property,plant,and equipment section of the federal balance sheet.

Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?

Explain the process of financial reporting of the U.S.Government as a whole.Does the federal government receive an unmodified audit opinion on its financial report?

Cumulative results of operations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation,or which has been obligated but not yet expended.

The Desert Conservation Agency was authorized by the United States Congress to commence operations on October 1,2017.Record the following transactions in general journal form,as they should appear in the budgetary and proprietary accounts of the agency.For each entry indicate whether it affects the budgetary accounts or the proprietary accounts. 1.The agency received official notice that its one-year appropriation passed by the Congress and signed by the President amounted to $350 million for operating expenses for the fiscal year and $100 million for acquisition of capital assets during the year. 2.The Office of Management and Budget notified the agency that the entire appropriation had been apportioned. 3.The head of the agency allotted $75 million for the first quarter's operating expenses,and $25 million for equipment to be ordered during the first quarter. 4.Purchase orders and contracts for services recorded for the first quarter totaled $90 million (the agency does not record commitments prior to placing orders or entering into contracts). 5.Total expenditures for the first quarter amounted to $70 million for operating expenses and $18 million for equipment,for which an obligation in the amount of $84 million had been previously recorded (see item 4 above).The expenditures were all paid from fund balance with U.S.Treasury.

Which of the following financial statements is not required by OMB Circular A-136?

Fund balances of a federal agency's various funds are reported in the fund equity section of the agency's balance sheet.

The federal budgetary term "commitment" is synonymous with "appropriations" as used in state and local government terminology.

Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts.

Where would federal agencies report information concerning their performance goals and performance results,along with their future challenges?

Social Security is an example of a trust fund administered by the federal government.

Objectives that are identified by SFFAC No.1 for federal financial reporting include budgetary integrity,operating performance,transparency,and stewardship.